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TPX vs. RH: Which Stock Should Value Investors Buy Now?
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Investors interested in Retail - Home Furnishings stocks are likely familiar with Tempur Sealy (TPX - Free Report) and Restoration Hardware (RH - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Tempur Sealy is sporting a Zacks Rank of #2 (Buy), while Restoration Hardware has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TPX is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
TPX currently has a forward P/E ratio of 13.74, while RH has a forward P/E of 30.02. We also note that TPX has a PEG ratio of 0.73. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. RH currently has a PEG ratio of 2.02.
Another notable valuation metric for TPX is its P/B ratio of 23.42. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, RH has a P/B of 28.67.
Based on these metrics and many more, TPX holds a Value grade of B, while RH has a Value grade of C.
TPX sticks out from RH in both our Zacks Rank and Style Scores models, so value investors will likely feel that TPX is the better option right now.
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TPX vs. RH: Which Stock Should Value Investors Buy Now?
Investors interested in Retail - Home Furnishings stocks are likely familiar with Tempur Sealy (TPX - Free Report) and Restoration Hardware (RH - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Tempur Sealy is sporting a Zacks Rank of #2 (Buy), while Restoration Hardware has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TPX is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
TPX currently has a forward P/E ratio of 13.74, while RH has a forward P/E of 30.02. We also note that TPX has a PEG ratio of 0.73. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. RH currently has a PEG ratio of 2.02.
Another notable valuation metric for TPX is its P/B ratio of 23.42. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, RH has a P/B of 28.67.
Based on these metrics and many more, TPX holds a Value grade of B, while RH has a Value grade of C.
TPX sticks out from RH in both our Zacks Rank and Style Scores models, so value investors will likely feel that TPX is the better option right now.